Cash Flow Management And Enterprise Value Creating

As we all know,if an enterprise has no profits, it can also run well.But if no cash,it will be plunged into bankruptcy.To an enterprise, The function of cash flow is equivalent to the blood of the human body. The maximum of enterprise value has already become the enterprise goal that people have generally accepted to suppose . According to Discounter Cash Flow Model,the maximum of the enterprise value is the maximum of the discounter of the future cash flow.Judging whether an operation creates value or not depends on whether it creates cash flow for the enterprise.The goal of cash flow management is to make enterprises keep normal cash circulation, create more cash flow, thus make enterprise value promoted.At present,there are many theories about value-based management from home and abroad.This paper manages the angle from cash flow, utilizes theoretical research and analytical method of the case to probe into enterprise value creating.This paper is divided into five chapters.The first chapter analyzes the background,the research purpose and the research current situation of cash flow management, and points out the importance of cash flow management.The second chapter discourses upon the theories of cashflow management and enterprise value,illuminates the connotation of cash flow and enterprise value,introduces cash flow-based value evaluation models and points out that cash flow is the source that enterprise value creates. The third chapter analyzes the cash flow information making use of all kinds of methods,throught which we try to find whether an enterprise creates value.The fourth chapter is the core of this paper.This chapter discusses cash flow management value-oriented from strategy and tactics aspects and presents early-warning system of cash flow.The last chapter concludes the above chapters and composes financial operaton mode in purpose of cash flow increasing and enterprise value growing.Through the discussion listed above,this paper can reach the following conclusions:1. By analyzing the driving factors of enterprise value creating,we can know cash flow is the source that enterprise creates value;2. Cash flow management is the key of enterprise value creating.First, the enterprise need control the orientation of cash flow from strategy;second,the enterprise carries out cash flow management from tactics.3. Traditional financial management idea and traditional financial function must be changed to adapt to the management which is based on promoting cash flow and creating enterprise value.Xu Lei (Enterprise Management) Supervised by Professor Ge Wenlei...